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Lexington council approves $1.005 million utilities revenue bond
Summary
The Lexington City Council on Jan. 27 approved Ordinance No. 2482, authorizing a Combined Utilities Revenue Bond, 2026 Series, of up to $1,005,000 to the Nebraska Department of Water, Energy and Environment, pledging sewer, water and electric revenues for repayment.
The Lexington City Council on Jan. 27 approved an ordinance authorizing the issuance of a Combined Utilities Revenue Bond, 2026 Series, in an amount not to exceed $1,005,000 to the Nebraska Department of Water, Energy and Environment. Mayor John Fagot presided over the meeting at Lexington City Hall.
The ordinance, introduced on final reading, directs the application of bond proceeds to the city’s sewer, water and electric systems and pledges the revenues and earnings of those systems for payment of the bonds and interest. The measure also states that interest on the bond “shall not be excludable from gross income for purposes of federal income taxation.” Councilmember John Salem moved to suspend the three-reading rule; the motion was seconded by Councilmember Jeremy Roberts and carried unanimously. The council then approved Ordinance No. 2482 on final reading by unanimous roll-call vote (Roberts, Jacob, Salem, Vivas, Fagot).
City staff did not provide additional detail in the minutes about specific projects funded by the bond at the Jan. 27 meeting. The ordinance text authorized city officers to set certain terms and details of the bonds, including the form of the promissory note and related loan agreement.
The council’s approval allows the city to proceed with executing the loan agreement and delivering the bond to the Nebraska Department of Water, Energy and Environment, subject to any terms set by city officers and requirements in the loan documents.
